Georgetown ISD trustees discussed a lower proposed tax rate for the 2023-24 fiscal year during a Sept. 5 workshop in anticipation of a property tax relief measure headed to voters Nov. 7.

What's happening

GISD officials are proposing a tax rate $0.0869 cents less than the rate used to calculate its budget. This comes as the Texas Education Agency has lowered the maximum compressed rate, or the maximum base rate for the district determined by the state, by 10 cents in the time since GISD approved its budget in June.

Other factors contributing to the lowering of the district's property tax rate include the proposed increase to the homestead exemption from $40,000 to $100,000 under Senate Bill 2, and the finalization of property values within the district's bounds.


Terms to know
  • The maximum compressed rate is a tax rate determined each year by the Texas Education Agency. Intended to maintain tax rate equity, the maximum compressed rate cannot have a value lower than 90% of tax rates levied by other districts across the state.
  • Golden pennies are additional pennies school districts can opt to add to their tax rates, generating revenue that is not subject to recapture. School districts can have a maximum of eight golden pennies, or 8 cents per $100 of valuation, included in its tax rate.
  • These pennies are added to the maintenance and operations rate, which generates property taxes to fund the operation of the district and includes the MCR.
  • The total tax rate is made up of the maintenance and operations rate combined with the debt service rate, also known as the interest and sinking rate, which funds payments on district-issued debt such as bonds.
  • Once approved by the district, the total tax rate is levied against all properties with taxable value within its bounds to yield property tax revenue.
What they're saying


GISD Chief Financial Officer Jennifer Hanna said that under SB 2, the district would receive approximately $2.5 million in funds annually from the state for a period of five years. These funds will be used to offset reduced tax revenue caused by a larger homestead exemption.

Should voters pass the property tax reduction measure in November, the district's budget would not be majorly impacted, Hanna said.

What else?

The GISD board of trustees will vote on its tax rate Sept. 18.